Term
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Definition
| Planning method used for the disposition and continuation of small business interests, the goals of which are the acquisition of a decedent business owner's interest by one or more business survivors or by the entity itself, and to peg te value of business interests or stock for transfer tax purposes. |
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Term
| Entity-Purchase Agreement |
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Definition
| A contract in which closely held business interest owners bind the business entity to purchase an owner's business interest upon the occurrence of specified events, such as death. |
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Term
| Cross-Purchase Buy-Sell Agreement |
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Definition
| A contract binding closely held business interest owners to purchase an owner's business interest upon the occurrence of stipulated events, such as death. |
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Term
| Entity (liquidation) Agreement |
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Definition
| A buy-sell agreement that provides that the entity will purchase and then liquidate the interest of a decedent-partner at death. |
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Term
| Stock-Redemption Buy-Sell Agreement |
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Definition
| A contract in which a closely held corporation is bound to purchase a shareholder's business interest upon the occurrence of certain specified events, such as death. |
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